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Foreign Income and Gains (FIG) Regime UK Tax Relief for New Arrivals

From 6 April 2025, the UK will introduce a new tax system for individuals moving to the UK after a period of non-residence. The Foreign Income and Gains (FIG) regime replaces the long-standing remittance basis and offers limited tax relief for qualifying new UK residents.

This page is designed to help you understand how the FIG regime works, who can benefit from it, and what it means for your UK tax compliance if you are moving (or have recently moved) to the UK.

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Who Can Use the FIG Regime?

To qualify for the FIG regime, you must:

  • Be UK tax resident under the Statutory Residence Test for the relevant tax year; and
  • Have been non-UK tax resident for the previous 10 consecutive UK tax years.

 
If eligible, you may claim FIG relief for up to four consecutive tax years starting with the year you become UK tax resident.

If you arrived in the UK in or after the 2022/23 tax year, you may still qualify for part of the four-year period. For example, someone arriving in 2023/24 would be able to claim the relief for 2023/24 to 2026/27.

What Does the FIG Regime Cover?

Under the FIG regime, qualifying individuals can:

  • Exempt foreign income from UK tax
  • Exempt foreign gains from UK capital gains tax
  • Claim Overseas Workday Relief (OWR) on foreign employment income

 
You can make one or more of these claims each year, depending on your personal circumstances.

Crucially, it does not matter whether the funds are brought to the UK. Unlike the remittance basis, there is no UK tax on remitted foreign income or gains during the FIG period.

What Are the Conditions and Trade-Offs?

Making a FIG claim in any tax year will mean:

  • You lose entitlement to the UK personal allowance and capital gains tax annual exempt amount for that year
  • You cannot claim foreign income or capital losses for that year

 
You should weigh these limitations against the tax you would otherwise pay on your foreign income and gains. In some cases, making a claim may not be beneficial.

How Do I Make a Claim?

You must claim the FIG relief through your UK Self Assessment tax return. You need to:

  • Identify which types of income or gains the claim covers
  • Quantify the amounts and include them in your return
  • File your return by 31 January in the second tax year following the year of claim (e.g. by 31 January 2028 for 2025/26 claims)

 
Unlike the old remittance basis, you must report the exempt income and gains even if they are not taxable.

What If I Have Small Amounts of Foreign Income or Gains?

There is no automatic exemption under the FIG regime for small amounts. Previously, individuals with less than GBP 2,000 of unremitted foreign income could ignore it under the remittance basis. This is no longer the case.

From 6 April 2025, if you are UK tax resident and have any foreign income or gains, they must be reported unless:

  • You are not required to file a UK tax return; and
  • No UK tax is due on the amounts received

We recommend seeking advice if you have small amounts of income and are unsure about your reporting obligations.

Rebasing of Foreign Assets

Some individuals who previously claimed the remittance basis may be able to rebase foreign assets to their 5 April 2017 value for capital gains tax purposes. This may reduce the gain taxable on future sales. There are strict conditions, so you should seek advice to determine if you qualify.

Temporary Repatriation Facility (TRF)

Eligible employees can also claim Overseas Workday Relief (OWR) during their FIG years. OWR offers UK tax relief for duties performed overseas, and from 2025 it applies even if income is brought into the UK.

However, making an OWR claim counts as a FIG claim and therefore:

  • You lose the personal allowance and CGT exemption
  • You cannot claim foreign losses

How We Can Help

Understanding and correctly applying the FIG regime can make a significant difference to your UK tax bill. Our team works with inbound individuals and can:

  • Confirm your FIG eligibility
  • Advise on whether to make a FIG claim or not
  • Prepare your Self Assessment return and ensure correct disclosures
  • Assist with mixed fund analysis, rebasing, and repatriation planning
  • Coordinate with your overseas advisors to manage cross-border compliance

FAQs

Yes, provided you have not yet used up your four-year FIG window and you meet the non-residence test for the 10 years before arrival.
No. From 6 April 2025, the FIG regime replaces the remittance basis and domicile is no longer relevant to income tax or capital gains tax.
No. You can choose which sources to claim for, which may help manage foreign tax positions or interaction with treaty claims.
Yes, but bear in mind that a FIG claim removes your personal allowance, so even modest UK income may be taxable.
You become fully subject to UK tax on your worldwide income and gains. Planning ahead for this transition is crucial.
No. Under the FIG regime, remitting foreign income and gains to the UK does not trigger tax during your FIG years.
No. Unlike the old remittance basis, the FIG regime does not carry a flat charge.
Yes. The OWR rules are integrated into the FIG regime from April 2025 and can be claimed alongside income and gains relief.

Contact Our Experts

For tailored advice on how the FIG regime applies to your situation, or to start working with us, please contact our team for a no-obligation consultation.

Sarah English

Senior Manager

Head of Direct Taxes

sarah.english@tuerner.com
+44 (0) 1636 526 075

Liam Perry

Senior Associate

Global Mobility, Personal Tax & VAT

liam.perry@tuerner.com
+44 (0) 1636 526 075

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